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A BILL TO BE ENTITLED
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AN ACT
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relating to the calculation of certain ad valorem tax rates of a |
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taxing unit. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 26.04(c), (e), and (e-1), Tax Code, are |
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amended to read as follows: |
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(c) An officer or employee designated by the governing body |
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shall calculate the effective tax rate and the rollback tax rate for |
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the unit, where: |
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(1) "Effective tax rate" means a rate expressed in |
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dollars per $100 of taxable value calculated according to the |
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following formula: |
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EFFECTIVE TAX RATE = LAST YEAR'S LEVY / (CURRENT TOTAL |
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VALUE - NEW PROPERTY VALUE) [(LAST YEAR'S LEVY - LOST
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PROPERTY LEVY)
/
(CURRENT TOTAL VALUE - NEW PROPERTY
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VALUE)] |
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; and |
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(2) "Rollback tax rate" means a rate expressed in |
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dollars per $100 of taxable value calculated according to: |
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(A) the following formula for a taxing unit other |
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than a school district: |
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ROLLBACK TAX RATE = EFFECTIVE TAX RATE x 1.08 [(EFFECTIVE
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MAINTENANCE AND OPERATIONS RATE x 1.08) + CURRENT DEBT RATE] |
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; or |
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(B) Section 26.08 for a school district. |
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(e) By August 7 or as soon thereafter as practicable, the |
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designated officer or employee shall submit the rates to the |
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governing body. The designated officer or employee [He] shall |
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deliver by mail to each property owner in the unit or publish in a |
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newspaper in the form prescribed by the comptroller: |
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(1) the effective tax rate, the rollback tax rate, and |
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an explanation of how they were calculated; |
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(2) the estimated amount of interest and sinking fund |
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balances and the estimated amount of maintenance and operation or |
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general fund balances remaining at the end of the current fiscal |
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year that are not encumbered with or by corresponding existing debt |
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obligation; |
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(3) a schedule of the unit's debt obligations showing: |
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(A) the amount of principal and interest that |
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will be paid to service the unit's debts in the next year from |
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property tax revenue, including payments of lawfully incurred |
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contractual obligations providing security for the payment of the |
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principal of and interest on bonds and other evidences of |
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indebtedness issued on behalf of the unit by another political |
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subdivision and, if the unit is created under Section 52, Article |
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III, or Section 59, Article XVI, Texas Constitution, payments on |
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debts that the unit anticipates to incur in the next calendar year; |
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(B) the amount by which taxes imposed for debt |
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are to be increased because of the unit's anticipated collection |
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rate; and |
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(C) the total of the amounts listed in Paragraphs |
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(A)-(B), less any amount collected in excess of the previous year's |
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anticipated collections certified as provided in Subsection (b); |
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(4) the amount of additional sales and use tax revenue |
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anticipated in calculations under Section 26.041; and |
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(5) a statement that the adoption of a tax rate equal |
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to the effective tax rate would result in an increase or decrease, |
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as applicable, in the amount of taxes imposed by the unit as |
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compared to last year's levy, and the amount of the increase or |
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decrease[;
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[(6)
in the year that a taxing unit calculates an
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adjustment under Subsection (i) or (j), a schedule that includes
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the following elements:
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[(A)
the name of the unit discontinuing the
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department, function, or activity;
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[(B)
the amount of property tax revenue spent by
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the unit listed under Paragraph (A) to operate the discontinued
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department, function, or activity in the 12 months preceding the
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month in which the calculations required by this chapter are made;
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and
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[(C)
the name of the unit that operates a
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distinct department, function, or activity in all or a majority of
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the territory of a taxing unit that has discontinued operating the
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distinct department, function, or activity; and
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[(7)
in the year following the year in which a taxing
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unit raised its rollback rate as required by Subsection (j), a
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schedule that includes the following elements:
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[(A)
the amount of property tax revenue spent by
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the unit to operate the department, function, or activity for which
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the taxing unit raised the rollback rate as required by Subsection
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(j) for the 12 months preceding the month in which the calculations
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required by this chapter are made; and
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[(B)
the amount published by the unit in the
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preceding tax year under Subdivision (6)(B)]. |
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(e-1) The notice requirements imposed by Subsection (e) |
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[Subsections (e)(1)-(6)] do not apply to a school district. |
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SECTION 2. Sections 26.041(a), (b), and (c), Tax Code, are |
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amended to read as follows: |
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(a) In the first year in which an additional sales and use |
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tax is required to be collected, the effective tax rate and rollback |
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tax rate for the unit are calculated according to the following |
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formulas: |
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EFFECTIVE TAX RATE = [LAST YEAR'S LEVY / (CURRENT TOTAL |
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VALUE - NEW PROPERTY VALUE)] - SALES TAX GAIN RATE |
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[(LAST YEAR'S LEVY - LOST PROPERTY LEVY) / (CURRENT
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TOTAL VALUE - NEW PROPERTY VALUE) - SALES TAX GAIN
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RATE] |
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and |
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ROLLBACK TAX RATE = (EFFECTIVE TAX RATE x 1.08) - SALES |
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TAX GAIN RATE [(EFFECTIVE MAINTENANCE AND OPERATIONS
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RATE x 1.08) + CURRENT DEBT RATE - SALES TAX GAIN RATE] |
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where "sales tax gain rate" means a number expressed in |
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dollars per $100 of taxable value, calculated by dividing the |
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revenue that will be generated by the additional sales and use tax |
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in the following year as calculated under Subsection (d) [of this
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section] by the current total value. |
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(b) Except as provided by Subsections (a) and (c) [of this
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section], in a year in which a taxing unit imposes an additional |
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sales and use tax the rollback tax rate for the unit is calculated |
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according to the following formula, regardless of whether the unit |
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levied a property tax in the preceding year: |
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ROLLBACK TAX RATE = [(LAST YEAR'S EXPENSE x 1.08) / |
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(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] - SALES TAX |
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REVENUE RATE [[(LAST YEAR'S MAINTENANCE AND OPERATIONS
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EXPENSE x 1.08) / (TOTAL CURRENT VALUE - NEW PROPERTY
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VALUE)] + (CURRENT DEBT RATE - SALES TAX REVENUE RATE)] |
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where "last year's [maintenance and operations] expense" |
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means the amount spent [for maintenance and operations] from |
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property tax and additional sales and use tax revenues in the |
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preceding year, and "sales tax revenue rate" means a number |
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expressed in dollars per $100 of taxable value, calculated by |
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dividing the revenue that will be generated by the additional sales |
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and use tax in the current year as calculated under Subsection (d) |
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[of this section] by the current total value. |
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(c) In a year in which a taxing unit that has been imposing |
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an additional sales and use tax ceases to impose an additional sales |
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and use tax the effective tax rate and rollback tax rate for the |
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unit are calculated according to the following formulas: |
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EFFECTIVE TAX RATE = [LAST YEAR'S LEVY / (CURRENT TOTAL |
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VALUE - NEW PROPERTY VALUE)] + SALES TAX LOSS RATE |
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[[(LAST YEAR'S LEVY - LOST PROPERTY LEVY) / (CURRENT
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TOTAL VALUE - NEW PROPERTY VALUE)] + SALES TAX LOSS
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RATE] |
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and |
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ROLLBACK TAX RATE = (LAST YEAR'S EXPENSE x 1.08) / |
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(CURRENT TOTAL VALUE - NEW PROPERTY VALUE) [[(LAST
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YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x 1.08) /
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(TOTAL CURRENT VALUE - NEW PROPERTY VALUE)] + CURRENT
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DEBT RATE] |
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where "sales tax loss rate" means a number expressed in |
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dollars per $100 of taxable value, calculated by dividing the |
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amount of sales and use tax revenue generated in the last four |
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quarters for which the information is available by the current |
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total value and "last year's [maintenance and operations] expense" |
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means the amount spent [for maintenance and operations] from |
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property tax and additional sales and use tax revenues in the |
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preceding year. |
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SECTION 3. Sections 26.044(a), (b), and (c), Tax Code, are |
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amended to read as follows: |
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(a) The first time that a county adopts a tax rate after |
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September 1, 1991, in which the state criminal justice mandate |
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applies to the county, the effective maintenance and operation rate |
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and effective tax rate for the county are [is] increased by the rate |
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calculated according to the following formula: |
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(State Criminal Justice Mandate) / (Current Total |
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Value - New Property Value) |
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(b) In the second and subsequent years that a county adopts |
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a tax rate, if the amount spent by the county for the state criminal |
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justice mandate increased over the previous year, the effective |
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maintenance and operation rate and effective tax rate for the |
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county are [is] increased by the rate calculated according to the |
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following formula: |
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(This Year's State Criminal Justice Mandate - Previous |
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Year's State Criminal Justice Mandate) / (Current |
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Total Value - New Property Value) |
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(c) The county shall include a notice of the increase in the |
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effective maintenance and operation rate and effective tax rate |
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provided by this section, including a description and amount of the |
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state criminal justice mandate, in the information published under |
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Section 26.04(e) and Section 26.06(b) [of this code]. |
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SECTION 4. Sections 26.0441(a), (b), and (c), Tax Code, are |
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amended to read as follows: |
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(a) In the first tax year in which a taxing unit adopts a tax |
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rate after January 1, 2000, and in which the enhanced minimum |
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eligibility standards for indigent health care established under |
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Section 61.006, Health and Safety Code, apply to the taxing unit, |
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the effective maintenance and operations rate and effective tax |
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rate for the taxing unit are [is] increased by the rate computed |
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according to the following formula: |
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Amount of Increase = Enhanced Indigent Health Care |
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Expenditures / (Current Total Value - New Property |
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Value) |
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(b) In each subsequent tax year, if the taxing unit's |
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enhanced indigent health care expenses exceed the amount of those |
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expenses for the preceding year, the effective maintenance and |
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operations rate and effective tax rate for the taxing unit are [is] |
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increased by the rate computed according to the following formula: |
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Amount of Increase = (Current Tax Year's Enhanced |
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Indigent Health Care Expenditures - Preceding Tax |
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Year's Indigent Health Care Expenditures) / (Current |
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Total Value - New Property Value) |
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(c) The taxing unit shall include a notice of the increase |
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in its effective maintenance and operations rate and effective tax |
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rate provided by this section, including a brief description and |
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the amount of the enhanced indigent health care expenditures, in |
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the information published under Section 26.04(e) and, if |
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applicable, Section 26.06(b). |
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SECTION 5. Section 26.08(n), Tax Code, is amended to read as |
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follows: |
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(n) For purposes of this section, the rollback tax rate of a |
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school district [whose maintenance and operations tax rate for the
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2005 tax year was $1.50 or less per $100 of taxable value] is equal |
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to the amount computed by multiplying the effective tax rate of the |
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district by 1.04[:
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[(1)
for the 2006 tax year, the sum of the rate that is
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equal to 88.67 percent of the maintenance and operations tax rate
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adopted by the district for the 2005 tax year, the rate of $0.04 per
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$100 of taxable value, and the district's current debt rate; and
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[(2)
for the 2007 and subsequent tax years, the lesser
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of the following:
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[(A) the sum of the following:
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[(i)
the rate per $100 of taxable value that
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is equal to the product of the state compression percentage, as
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determined under Section 42.2516, Education Code, for the current
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year and $1.50;
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[(ii)
the rate of $0.04 per $100 of taxable
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value;
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[(iii)
the rate that is equal to the sum of
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the differences for the 2006 and each subsequent tax year between
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the adopted tax rate of the district for that year if the rate was
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approved at an election under this section and the rollback tax rate
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of the district for that year; and
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[(iv) the district's current debt rate; or
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[(B) the sum of the following:
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[(i)
the effective maintenance and
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operations tax rate of the district as computed under Subsection
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(i) or (k), as applicable;
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[(ii)
the rate per $100 of taxable value
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that is equal to the product of the state compression percentage, as
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determined under Section 42.2516, Education Code, for the current
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year and $0.06; and
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[(iii) the district's current debt rate]. |
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SECTION 6. Section 42.2522(e), Education Code, is amended |
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to read as follows: |
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(e) The commissioner shall notify school districts as soon |
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as practicable as to the availability of funds under this section. |
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[For purposes of computing a rollback tax rate under Section 26.08,
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Tax Code, a district shall adjust the district's tax rate limit to
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reflect assistance received under this section.] |
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SECTION 7. Section 45.261(e), Education Code, is amended to |
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read as follows: |
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(e) Any part of a school district's tax rate attributable to |
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producing revenue for purposes of Subsection (c)(1) is considered |
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part of the district's[:
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[(1)
current debt rate for purposes of computing a
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rollback tax rate under Section 26.08, Tax Code; and
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[(2)] interest and sinking fund tax rate. |
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SECTION 8. (a) The following provisions are repealed: |
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(1) Section 281.107(j), Health and Safety Code; |
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(2) Section 26.01(d), Tax Code; |
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(3) Sections 26.012(3), (4), (5), (10), and (15), Tax |
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Code; |
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(4) Section 26.03, Tax Code; |
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(5) Sections 26.04(i) and (j), Tax Code; |
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(6) Sections 26.08(e), (g), (h), (i), (i-1), (j), (o), |
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and (p), Tax Code; and |
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(7) Section 222.1071(l), Transportation Code. |
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(b) Section 57.29, Chapter 4 (S.B. 1), Acts of the 82nd |
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Legislature, 1st Called Session, 2011, which amended Subsection |
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(i), Section 26.08, Tax Code, is repealed. |
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SECTION 9. This Act applies to the ad valorem tax rate of a |
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taxing unit beginning with the 2016 tax year. |
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SECTION 10. This Act takes effect January 1, 2016. |